Abhay Singh
North American esports infrastructure company, Nerd Street, recently secured a significant financial boost by raising $6 million in its most recent funding round.
It’s noteworthy that the bulk of this funding, amounting to $5 million, was spearheaded by the prominent venture capital firm Konvoy Ventures.
Additionally, the remaining $1 million was contributed by a group of ‘strategic investors,’ indicating diverse support for Nerd Street’s innovative endeavors within the esports industry.
The funds raised aim to enable Nerd Street to grow its infrastructure business
The funds raised are intended to support Nerd Street’s expansion of its infrastructure business and the establishment of additional collegiate Localhost venues throughout the United States.
Notably, in 2023, the company successfully inaugurated its latest Localhost venue at Rowan University, showcasing its commitment to growth and innovation in the esports industry. The decision to seek funding came after reports emerged in 2023, suggesting that Nerd Street was exploring potential acquisitions as a result of financial challenges arising from delays in compensating players involved in its tournaments.
Recent findings from a Digiday report published this month shed light on the company’s strategic move to secure a loan from Riot Games to address these payment issues, a debt that has since been promptly repaid, reflecting Nerd Street’s dedication to upholding ethical standards and ensuring fair treatment for all stakeholders involved.
“We went through a brutal two years in survival mode”
John Fazio, Founder and CEO of Nerd Street said “There’s no sugar coating it, we went through a brutal two years in survival mode to get here. We couldn’t have asked for a better partner in Konvoy given their experience, network, and most importantly their passion for the industry. Together, we’re going to build something that amplifies the entire industry.”
Nerd Street will concentrate on its academic verticals by opening locations at institutions around North America, as opposed to going back to running esports tournaments.
The business announced that it has teamed up with Temple University to hold an esports program at Localhost in Philadelphia. Additionally, Nerd Street will oversee a youth summer camp effort through its connection with Maryville University.
It appears that Nerd Street’s emphasis on its Localhost capabilities has taken off. Nerd Street and PC peripherals maker Higround forged a cooperation in September 2024.
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